risks in International Business

International Business Student: Professor: Course title: Date: International business refers to business transactions by such organs as government, logistics, sales, transportation or investment occurring between two or more countries, states or nations. In most instances, private firms undertake such transactions for profit while governments may undertake such businesses for either profit or political purposes. In essence, internal business includes the business operations which include cross border exchange of goods, services or resources between two or more states (Capenter, 2012). There are a number of risks associated with international businesses. Some of these risks include: country risk, sovereignty risk and currency risk. Country risk includes all those risks associated with the investment in another state (Carpenter, M and Dunung, 2012). These kinds of risks differ from political, economical and sovereign risks. If a particular country has high rate of risks, it will discourage investments from other nations which should not be recommended at all. Investors in most cases take into consideration the status of a particular country risk because it will certainly reduce its antic...